DTV, Stimulus Package, Recovery Solutions to Stay High on FCC Agenda
The DTV transition, distribution of the broadband stimulus money and economic recovery plans will remain top priorities this year and beyond for the FCC, speakers said at the FCBA summit on the 75th anniversary of the agency and the Communications Act.
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The DTV transition will be the main task, Commissioners Robert McDowell and Jonathan Adelstein said late Tuesday. Praising the progress made by the FCC’s call center, including coordinating with a broader effort, McDowell said “the worst is yet to come and millions of people will be left behind,” regardless of when TV stations cut off their analog signals. On the stimulus money, the first step is to define “unserved” and “underserved” areas and figure out how to allot money to the areas, Adelstein said. On the D block, Adelstein said challenges to creating a public-private partnerships have grown as the tight credit market has put financing constraints on creating a public safety network. Still, he emphasized his confidence that the commission can handle the issues better than on its previous try.
In the tough economy, the FCC should create an environment for attracting capital, McDowell said. Too much regulation will drive away investment, he said. The commission needs to restore confidence and ensure stability, McDowell said. Stifel Nicolaus analyst Rebecca Arbogast agreed, citing the Sirius XM proceeding. She noted how long the government took to issue its final decision, saying the Department of Justice and the FCC did a “slow dance” with each other. Slow decision-making can drive away capital during the economic crisis, she said.
McDowell said acting Chairman Michael Copps acted swiftly to open lines of communication with his fellow commissioners, all FCC aides and outsiders in the past 30 days. It will be crucial to get studies done and have options ready before the new chairman arrives, Adelstein said.
Attorney Barry Ohlson expressed concern over the DTV delay, saying the extra time adds pressure on the FCC by raising viewers’ expectations. Another concern is sending mixed messages to consumers, he said.
On the broadband stimulus package, Arbogast said earlier versions had tight interim deadlines, but they disappeared in the House-Senate conference. So the NTIA and the RUS must spend $7 billion in 18 months, and the FCC must develop a detailed nationwide plan for broadband service in 12 months, she said. Congress provided some guidelines but left the agencies with considerable leeway, she said.
Spending under the RUS program is limited to infrastructure, Arbogast said. There’s no net neutrality requirement, she said. But the law could be subject to various interpretations by the Department of Agriculture, she said. About 75 percent of the $2.5 billion funding will go to rural areas without sufficient access to high-speed broadband to facilitate rural economic development, Arbogast said. She expects small rural carriers, such as OPASTCO members to seek funding.
On the NTIA program, Arbogast said a wide range of applicants and projects may qualify for money. She emphasized that these grants can go to projects to increase broadband use in those areas already served. She cited recent studies that said 95 percent of the country has access to broadband service, but less than 60 percent of households subscribe. This could make NTIA’s job more complex because, unlike RUS, NTIA may need to compare very different types of proposals, she said. Unlike in Sweden, she said, where the single incumbent reportedly received 65 percent of government broadband money, various bodies probably will get NTIA money.